Solar Millennium strengthens its holdings in the Andasol 1 and 2 power plant companies

• controlling influence secured
• additional income from plant operation
• significant increase in value anticipated

Erlangen, 27.06.2008 Solar Millennium AG (ISIN 0007218406) has rescinded the former dominating influence exercised by a private investor group in its subsidiary and holding company Solar Millennium Verwaltungs GmbH. Solar Millennium now has the sole control of Solar Millennium Verwaltungs GmbH and therefore will be able to benefit from the entire profits and increasing values of Andasol 1 and 2 held by the holding company.

Solar Millennium Verwaltungs GmbH holds a 25% stake in the Andasol 1 and 2 projects. These are the first two parabolic trough power plants in Europe. Developed by Solar Millennium they are being built in Andalusia in southern Spain. Solar Millennium sold the remaining 75 percent in these two projects to the Spanish ACS/Cobra Group prior to realization. Andasol 1 will go into operation in late summer 2008, followed by Andasol 2 in spring 2009.

In the 2004/05 and 2006/07 fiscal years Solar Millennium had assigned the 25 percent holding in the Andasol 1 and Andasol 2 projects to their wholly owned subsidiary Solar Millennium Verwaltungs GmbH, in which a private investor group had a dominating influence as a dormant partner. For this reason Solar Millennium Verwaltungs GmbH was not consolidated in the Solar Millennium AG latter financial statements. With the revocation of the controlling influence Solar Millennium Verwaltungs GmbH will be fully integrated and consolidated in the Solar Millennium financial statements, resulting in an increase in assets.

Thomas Mayer, Solar Millennium's chief financial officer, explains the measures taken: "We see substantial value potential in the Andasol 1 and Andasol 2 holdings. The shares will see a significant increase in value as soon as the solar thermal power plants are put into operation. After commissioning we will decide either to sell our shares, or to retain them on a long-term basis."

About Solar Millennium AG:
Solar Millennium AG, Erlangen, is a globally active company in the renewable energy sector, with its main focus on solar thermal power plants. Together with its subsidiaries, Solar Millennium specializes in parabolic trough power plants - a reliable, proven technology in which the company is a worldwide leader. The company covers all major business sectors of the value-added chain for solar thermal power plants, from project development to technology and turn-key construction of power plants, to the operation and ownership of power plants. In Spain, Solar Millennium developed Europe's first ever parabolic trough power plants, two of which are already under construction. Further projects are planned with a capacity of several hundred Megawatts located worldwide, with the focus upon Spain, the USA, China and North Africa. The company is also developing solar chimney power plants, with the aim of making this technology ready for the market.

About solar thermal power plant technology:
Solar thermal power plants generate electricity using heat energy captured from solar radiation. In a parabolic trough power plant, trough-shaped mirrors concentrate the sun's rays onto a pipe in the focal line of the collector. Their absorption heats a transfer fluid in the pipe, generating steam in the power block by way of heat exchange. As with conventional power plants, the steam is utilized in a turbine to generate power, and by integrating thermal storage, this power can be supplied on demand. Thus, solar power plants can also generate electricity after sunset.

You can download the press release here.